513: How to be Successfully Unemployed

SHOW NOTES FOR EPISODE 513: HOW TO BE SUCCESSFULLY UNEMPLOYED

Would you like to become financially independent for the rest of your life by creating massive passive income?  In today’s podcast, author, rental property expert and founder of MassivePassiveIncome.com Dustin Heiner will be sharing his unique passive-income-generating method and how you too can become financially independent through high cash flowing rental properties.

What You Will Learn

• Where to find houses that will generate $250 per month in passive cash flow
• What are the three best states to find high cash flowing houses
• How Dustin only works 30 minutes a month on his rental properties
• The “opposite” way he invests in rental properties compared to most other investors
• How to build your real estate business
• What key thing motivated Dustin to create his own real estate empire

About Our Guest

Dustin Heiner

Dustin Heiner is a rental property expert and the founder of MasterPassiveIncome.com and RentalPassiveIncome.com.  Being “Successfully Unemployed” at 37 years old by investing in properties, he is now on a mission to help people to quit their jobs and never have a job again. Dustin started MasterPassiveIncome.com from his home in 2015, while being a full time employee, married with 4 children, owning and operating 2 other businesses, and being a full time investor.  Also in 2015, Dustin wrote his first book, “How to Quit Your Job with Rental Properties” which quickly became a best seller.

More About Dustin

• Dustin’s biological dad and step dads were both entrepreneurs, bio dad had his own business and step dad was a contractor
• Dustin’s always been entrepreneurial by nature too
• He especially like like working on homes and real estate in general
• He has started different companies:
  • Graphic and website design company
  • Skateboard company
  • Convenience store
  • Pizzeria
  • but the easiest one made him the most money and required the least amount of work  – real estate investing
• In 2007-2008, he bought his first rental properties
  • He bought ONLY for cash flow, not for equity
  • That was one of the reasons he survived the Great Recession
  • He still owns the properties he bought back then

How Dustin Got Started in Real Estate

• He got married
• Got a job working with in county in California for
• Worked there for 5-10 years
• Had 3 kids and one on the way
• Was on paternity leave for the 4th child
• Comes back after a week or two
• Then, on a Friday, at 3pm, he is called by his boss’ secretary to come to speak with the boss
• He gets fired
• He felt terrible
• He thought of 2 things
  • I need to get another job ASAP to provide for my family
  • I need to make sure that this will never ever happen again
• He decided then that he was going to be a true real estate investor
  • He had a few small properties in the past
  • This time, he was going to scale and be serious about it
  • Even though he might get another full-time job, he was going to tell people that he was a real estate investor
• He did get another full-time job (working for the county sheriff’s office in the IT department)
• But he was committed to investing in real estate while working full-time

Growing His Portfolio

• It was not easy getting started
• He had to make many sacrifices to raise the funds to purchase the properties
  • No family vacations
  • No eating out
  • He knew that every penny he spent on “other things” would take that much longer to reach his goal of being Successfully Unemployed
• He loves residential real estate, 1-4 units
• He knew that he couldn’t get enough cash flow in California so he sought out-of0state properties
  • Ohio, Texas and Arizona had the right properties to generate $250 monthly cash flow
    • He started in Youngstown, OH
    • He would not recommend anyone to invest there today
    • Home prices are low but crime is high
    • He knows now how to make money there but it is not for the faint at heart
  • He looked for lower home prices and higher rents
  • He ended up in some pretty rough neighborhoods
• Re started buying one property after another, re-financing and using equity to buy more
• He bought 19 properties in 6 years
• It took him 6 to 7  years, but he finally was able to quit his W2 job and live off of his real estate investments
• He knew he would never need another job again
• He became “Successfully Unemployed”

Scaling Up

• He currently has 30 properties that cash flow $250 each
  • All single family homes
  • In areas ranging from D to B+
• His real estate business
  • He only works 30 minutes a month on it
  • He has the business being run for him
• And since he had completely delegated all the responsibilities for running the properties, he had nothing to do
• So, he set-out to help others to become Successfully Unemployed:
  • Established his website – MasterPassiveIncome.com
  • Created a podcast
  • YouTube videos

How He Invests in Rental Properties

• Most coaches will tell you:
  • Find a good property
  • Account for all your income and expenses
  • Make sure you are going to generate passive income
  • Find someone to rehab it and fix it up
  • Find a property manager
  • Find a tenant
• In Dustin’s opinion, that’s all backwards
  • He builds the business first – before he buys properties
  • Then, every property you buy is a piece of inventory (like products are in a store)
  • People will say, “Your property is your business” and Dustin says that’s not right – Your property is a piece of inventory in your business
  • Once the business is built, all you have to do is buy another property
• Building the Business
  • Hire your experts
    • Accountant
    • Lawyer
  •  Set-up Business Structure
    • Set up LLC
  • Establish Business Credit
  • Find the city you are going to purchase properties
    • Make sure there’s enough properties/inventory to invest there
  • Next, put together your team from that city (in this order)
    1. Property manager
    2. Inspectors
    3. Contractors
    4. Realtors
    5. Wholesalers
  • Find your property
    • You find a property that meets all your numbers

Biggest Mistake(s)

• He didn’t build his business first
• He hired the first property manager he could find
  • In six months, she was stealing from him with fake receipts
  • He had to fire her
  • He found out he needs to HIRE THE RIGHT PROPERTY MANAGER
• He didn’t utilize his experts enough
  • He bought a house in a location where he had to re-do the entire electrical
  • He should have contacted one of his local team members who would have been able to help prevent that problem

Biggest Success(es)

• At age 26, he set a goal to quit his job within 10 years, become successfully unemployed and never work a 9-to-5 job again
• He read Rich Dad Poor Dad and he had the same 10 year quitting goal
• Dustin was able to quit after 7 years but was scared to do so
• By the 9 year mark, he saw that he was losing money working his full-time job and quit

Advice for Old Dawgs Looking at Real Estate Investing to Help Them in Their Retirement Years

• Do it right the first time!
• Follow someone who has done it right
• There’s a great quote says, “A smart man learns from his mistakes but a wise man learns from others’ mistakes.”
• You can’t count on Social Security to always be there, nor can you count on your retirement nest egg to last your entire lifetime either
• With real estate, not only will you have a passive income source for the rest of your life, but you will have a legacy to hand down to your children
• Rental properties are not a “Get Rich Quit” solution, it’s a “Get Wealthy Plan”
  • It all depends on you
    • He had a coaching student in his 20s that started working on his plan in October 2019
    • He has since bought 6 duplexes which generate $4,200 a month in passive income
    • You can reach your goal faster if you’re willing to put in the time
  • Because Dustin invests for cash flow, he doesn’t care if the market goes up or down
• If you’re older, you have an advantage
  • More wisdom
  • More insights
  • More capital to invest
• Set your goal
  • For example: In 5 years, I want to generate $3,000 per month in passive income
    • If you get 10 properties, that’s $2,500 per month in passive income or $30,000 per year, you just need two more to reach your goal of $3,000 per month and $36,000 a year in income

Current Business

• With MasterPassiveIncome.com he can help lots of people
• And with the funds he generates with Massive Passive Income, he is able to buy more real estate
• He has funds he has set aside to purchase discounted properties if/when there is a market correction
  • If there is a correction, he will buy as many properties as he can
  • If there isn’t a market correction, he’s still making money buying properties now – they just are just a little harder to find
• The more people he helps, the more money he makes and the more people benefit from what he teaches them
• He also helps people by providing good rental properties at affordable rents
  • He saves a lot of money just by having less turnover
• He likes seeing how serving people has such incredible benefits

Rap-It-Up

• Favorite real estate book: Rich Dad Poor Dad by Robert Kiyosaki
• Favorite business book: The Richest Man in Babylon and How to Win Friends and Influence People by Dale Carnegie
• Most valuable web site for success (other than your own): Zillow
• Favorite app: eMail
• Favorite quote: “The best time to plant a tree was 20 years ago.  The second best time is now.”
• If you lost everything – all your assets – and had to start all over, knowing what you already know, and you only had $1,000, what would you do to launch your real estate investing business?  I would network with others, showing them how they could use me to invest their money. I would build my business using other people’s money and taping into experts who could help me succeed.

Free Downloadable Course

• Website: MasterPassiveIncome.com/FreeCourse

How to Reach Dustin

• Website: MasterPassiveIncome.com
• Podcast: https://www.masterpassiveincome.com/podcast
• YouTube: https://www.youtube.com/user/triune51

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Check out our other podcasts at olddawgsreinetwork.com.

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Additional Episode Sponsor: Meno Studio – menostudio777@gmail.com